Wilmar Group company Shree Renuka Sugars Ltd. (SRSL) plans to raise the production of ethanol by 25% next year as part of its drive towards green energy, executive chairman Atul Chaturvedi said.
“In India the demand for ethanol is skyrocketing,” Mr. Chaturvedi said in an interview. “Ethanol will be taking India to carbon neutrality. We are currently selling 200 million litre of ethanol per annum to the government. This is significantly contributing to our revenue and this has also helped in cash flow. We will be increasing output by 25% in FY24,” he added.
Since 2018, when Wilmar of Singapore acquired control of the debt-laden Shree Renuka Sugars from its erstwhile promoters, the company has increased ethanol production capacity from 570 kilolitre per day (KLPD) to 1,250 KLPD with an estimated investment of ₹850 crore.
Mr Chaturvedi said the company would continue to keep evaluating expansion of ethanol portfolio, including acquisitions.
The company that was undergoing financial stress has turned around with capital infusion from Wilmar which now controls 62.4% of Shree Renuka’s shares.
“Revenue growth has been substantial and company has been on good path,“ Mr. Chaturvedi said.
The company has also decided to focus to grow its branded sugar business under Madhur Sugars.
“Madhur has been growing at more than 20% per annum and we have production capacity of 170 tonnes. Post COVID, consumer profile has changed and the purchase of loose sugar is decreasing. We will continue to grow Madhur to a pan India brand and are looking for 20% growth year-on-year,” he said.
In sugar production, the company is now looking at investing in States other than Karnataka and Maharashtra where it is already present. It is also open to acquisitions as sugar consumption in India is on the rise growing by 2% annually, reaching 27.5 million tonnes.
The company, which has two sugar refineries in Kandla and Haldia, is one India’s biggest exporters of sugar. It exports to Middle East, Bangladesh and Sri Lanka and exports are growing Mr. Chaturvedi said..
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